![]() Also, remember that in any association with 20 or fewer owners, it just takes one owner to submit a petition. Maintaining an accurate membership list is crucial so that you do not have to spend time or money researching unit grant deeds each time a petition is received. Tenants and non-owner family members also do not count toward the 5% requirement. If not, only the owner(s) listed on the grant deed should be counted. Sometimes you will see multiple persons signing from one unit, which is only permissible if all such persons are actual owners. When reviewing a petition, confirm that the signatories are record owners on title (i.e., the owners listed on the unit grant deed). Of course, sometimes this is difficult to tell. Related to this, do the signatures on the petition belong to actual owners? If 5% or more of the owners have not signed a petition, you can stop there because the petition is invalid. First, is the petition signed by 5% or more of the owners? When receiving a petition, there are a few threshold issues to confirm. Section 7511(e) of the Corporations Code states that the petition must be in writing and submitted to the board chair, president, vicepresident, or secretary. Section 7510(e) of the Corporations Code states that 5% or more of the owners of a corporation can submit a petition for a special meeting of the members for any lawful purpose. Petitions are primarily governed by the California Corporations Code. ![]() Many owners believe they can demand anything they want through a petition, which is simply not the case. ![]() Membership petitions are becoming increasingly common for associations, and the relevant statutory authorities do not provide the clearest picture of how associations should handle them. Now what? Is it valid? Do you have to hold an election or meeting? If so, by when? Where do you go from here? These are just some of the questions you might have when receiving a petition, and there are many others to consider. Your board of directors is conducting a regular board meeting when a disgruntled owner hands over a petition to the board.
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